Laboratory technology and laboratory services:
Tailor-made mergers & acquisitions that create value

ConAlliance is both an industry and M&A expert and thus ensures the fastest and best possible M&A transactions and expertise in this laboratory segment. The "laboratory" sector is complex because it includes laboratories and their services on the one hand and laboratory technology on the other. We advise both the buyer and the seller - but never both sides at the same time.

 

Laboratories and their Services

Global laboratory markets are undergoing a significant consolidation phase, marked by an increasing number of mergers and acquisitions (M&A). Large, often internationally operating laboratory chains are acquiring smaller, local laboratories to increase market share and expand their geographic presence. These activities are particularly pronounced in major European markets such as Germany, France, the UK, and the Nordic countries.

Private equity firms are also increasingly interested in the laboratory market due to its stable earnings prospects and the rising demand for diagnostic services. These firms are driving consolidation by acquiring smaller laboratories, merging them, and enhancing their efficiency. Advances in laboratory technology, automation, and digitalization further fuel this consolidation. Larger laboratories are better positioned to invest in modern technologies, achieving efficiency gains and cost reductions, which leads to the acquisition or merger of smaller, less competitive laboratories. European laboratory networks are increasingly expanding beyond national borders to benefit from economies of scale and strengthen their market position. International players are entering the market and contributing to this consolidation by acquiring and integrating local laboratories.

Acquisitions are a critical strategic tool for multinational companies, enabling them to accelerate their expansion in the vital European laboratory market. The market's globalization attracts well-funded foreign investors interested in acquiring laboratories or chains in the DACH region to leverage their advanced technology, quality, and productivity. In this context, M&A plays a central role in securing competitive advantages and expanding market share.

M&A transactions in the laboratory sector require careful planning and execution due to stringent regulatory requirements, particularly concerning the quality and safety of services. The market is also characterized by rapid technological advancements and evolving regulatory landscapes.

Amidst ongoing consolidation and internationalization in the European laboratory market, ConAlliance advises both national and international strategic investors and financial investors on the acquisition and sale of laboratories.

 

Laboratory Technology

Laboratory technology encompasses the equipment, instruments, processes, and technologies used to conduct experiments, analyses, and research. It is a growth market characterized by rapid technological progress, increasing demands for precision and efficiency, and high innovation pressures. In such a dynamic environment, M&A is becoming increasingly important to secure competitive advantages, achieve innovation leadership, and expand market share. Expanding and diversifying product portfolios by integrating new technologies and solutions is a key driver of M&A in the laboratory technology sector. Acquiring innovative start-ups or established companies enables quicker access to new technologies and market segments, crucial in a field where continuous innovation is vital for competitiveness.

Through strategic acquisitions, companies can gain early access to disruptive technologies such as automated laboratory systems, artificial intelligence, or advanced sensor technologies. M&A can significantly strengthen research and development (R&D) capabilities by integrating new talent, expertise, and innovation into the company. This accelerates the development of new products and consolidates the company's position as a technology leader. Acquiring a company with a strong R&D pipeline also helps mitigate innovation risks and shortens the time to market for new products.

Important laboratory technologies include automated analysis devices (chemical and biochemical analyzers, immune analyzers, blood gas analyzers, urine analyzers, electrolyte analyzers), molecular biology devices (PCR machines, NGS devices), microscopes (confocal and electron), centrifuges, pipetting robots, autoclaves, sterilization devices, refrigeration units, cryotanks, calibrators, reagents, safety cabinets, laboratory management systems, data analysis software, nucleic acid extractors, thermal cyclers, and chromatography systems.

With its extensive expertise in medical and laboratory technology, ConAlliance is a leading M&A advisor in Europe and beyond. For confidential advice, please contact us.

 

Opportunities Through Mergers and Acquisitions in the Laboratory Market

Economies of Scale and Cost Synergies: M&A allows companies to achieve significant economies of scale by expanding production capacities and reducing costs, essential in a capital-intensive market like the laboratory sector.

Product Portfolio Expansion: M&A enables companies to diversify their product lines and services to enter new markets and strengthen their market position. For example, a laboratory specializing in genetic testing could expand by acquiring a firm specializing in biochemical analysis.

Technological Integration and Innovation: Acquiring innovative start-ups or smaller companies with specialized technologies helps larger laboratory companies expand their technological capabilities and innovative strength, a crucial factor in a technology-driven market.

Access to New Markets and Customer Bases: Strategic acquisitions allow companies to expand their geographic footprint and access new customer segments, such as acquiring a laboratory in an emerging region to secure early market share and benefit from future growth opportunities.

 

Success Factors ConAlliance brings to the Table

ConAlliance possesses deep industry expertise in corporate transactions within the laboratory sector. M&A in this field involves complex scientific, medical, pharmaceutical, commercial, and corporate law considerations, handled exclusively by ConAlliance's M&A specialists with professional and industry experience. Clients benefit from exclusive access to our specialized knowledge and our extensive network in the national and international laboratory markets.

Accurate valuation and thorough due diligence are crucial to minimizing financial risks, including assessing both tangible and intangible assets like patents, trademarks, and ongoing research projects. The integration of diverse IT systems and databases can be complex and costly, requiring a well-thought-out integration plan to avoid data loss and maximize the efficiency of merged entities.

Mergers and acquisitions in the laboratory market are attractive to both buyers and sellers. However, these transactions also pose challenges that demand careful planning, thorough due diligence, and effective execution. For specialized advice in this field, feel free to contact us.

Quickcontact

Cliff Murphy, MBA

Managing Director United Kingdom
+44 (20) 81 44 36 00
Curriculum vitae & references

Günter Carl Hober

Managing Partner
+49 (89) 809 53 63- 0
Curriculum vitae & references

Prof. Dr. Dr. Ulrich Hemel

Partner
+49 (89) 809 53 63- 0
Curriculum vitae & references

Peer-Olof Andersen

Head of Scandinavia
+44 (20) 81 44 36 00
 

Masashi Asai

Head of Japan
+ 81 (50) 553931-00
 

Dr. Charlotte Rothmann

Head of the Americas
+1 (312) 38 00 85 0
Curriculum vitae & references

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ConAlliance offers you:

    M&A Laboratory Technology M&A Laboratory Diagnostics M&A Laboratory Automation Mergers & Acquisitions Diagnostics Mergers & Acquisitions Laboratory Companies


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M&A, Mergers & Acquisitions and Commercial Due Diligence in the segment "Laboratory Medical Technology". This includes the following medical devices/medical technology: Biochemical analyzers, electrolyte analyzers, blood gas analyzers, urine analyzers, hematology analyzers, coagulometers, hemoglobin meters, blood glucose meters, accessories for blood glucose meters, immunoassay analyzersImmunoassay analyzers, ELISA analyzers, microplate readers, microplate washers, Identification systems for microorganismsIdentification systems for microorganisms, Flow cytometers, Cell counters, Colony counters, Molecular biology analyzers, Blot systems, Protein analyzers, Electrophoresis systems, Pregnancy test readers, Other point-of-care testing devices (POCT), Other clinical laboratory analyzers, Gas chromatography systemsGas chromatography systems, Liquid chromatography systems, Other chromatography systems, Absorption spectrometers, Emission spectrometers, Mass spectrometers, Optical microscopes, Digital microscopes, Stereomicroscopes, Digital cameras for microscopes, Accessories for microscopes, Other laboratory imaging systems, Colorimeters, polarimeters, luminometersColorimeters, polarimeters, luminometers, Laboratory balancesLaboratory balances, Laboratory thermometers, Conductivity meters, Osmometers, Laboratory pH meters, Laboratory data loggers, Environmental gas measuring devices, Laboratory softwareLaboratory software, Other equipment for analytical chemistry, Sampling tubes, Laboratory swabs, Other laboratory equipment for sampling, Laboratory printers, Labeling lasers, Laboratory printers, Labeling lasers, Laboratory labelers, Apheresis system, Plasmapheresis devices, Blood collection monitors, Blood tube welders, Nucleic acid extractors, Thermocyclers, Automatic sample preparation devicesAutomatic sample preparation devices, Devices for tissue preparation, Devices for slide preparation, Staining machines for slides, Microtomes, Accessories for histology, Laboratory centrifuges Laboratory centrifuges, Accessories for laboratory centrifuges, laboratory shakers, laboratory magnetic stirrers, platelet agitators, platelet incubators, laboratory mixers, laboratory heating plates, heating mantles for laboratories, laboratory baths, laboratory heating blocks, laboratory evaporators, laboratory thermostats, reagent dispensers, culture medium preparers and culture medium dispensers, Petri dishes, pipettes, pipetting aids, micropipettes, Pasteur pipettes, pipette accessories, sample tubes, measuring cylinders, measuring cylinders, vials, sample tubes, laboratory holders, laboratory microplates, laboratory filters, laboratory freezers, laboratory refrigerators, medication refrigerators, blood bank refrigerators, blood plasma freezers, laboratory cabinets, other laboratory materials, sample management, laboratory tables, Macroscopy tables and workstations, Dosimeters, Cyclotrons, Laboratory incubators, Laboratory drying ovens, Bioreactors, Hypoxia chamber, Climatic chamber, Laboratory sterilizers, Disinfection-cleaning machines for laboratories, Disinfection systems, Disinfection lamps, Sample collectors, Laboratory water purifiers, Laboratory water distillers and Laboratory water softeners, Laboratory infrastructures M&A Consultants

We have specific expertise in the disciplines of medical technology, laboratory technology, laboratory automation, robotics, laboratory equipment, laboratory supplies and laboratory diagnostics and can therefore implement your M&A mandate optimally without start-up losses.

 

Over the last years M&A-activities in the laboratory industry have maintained a robust pace. In addition to general terms of target attraction like brand, size and innovation potential, there are a number of reason contributing to the increase in lab M&A-activities:

  • Lower cost of capital.
  • Consolidation in the fragmented marketplace lead to potential efficiencies of scale in laboratory operations, sales and marketing.
  • Increasing tool set like molecular diagnostics enable to provide more personalised care leading to higher value diagnostics.
  • Strategic value of access to patient samples speed time-to-market for therapeutics and diagnostics companies focused on the development of new tests and therapies.
  • Reimbursement changes and increased “in-sourcing” of tests impact revenue and encourage middle-market laboratory owners to sell.

 

Clinical diagnostic labs differ by business model, size, technologies, disease foci, R&D capabilities, and relationships with healthcare providers and payors. The acquisition of a clinical diagnostic lab and the identification of the right target from thousands of labs can be daunting. Looking at the bidding landscape, large public laboratories as highly active buyers have been focused on deal volume, other players are or were increasingly interested in the laboratory testing market.  Life-science companies, diagnostic manufacturers and pharmaceutical companies need access to patient and pathology samples for research and development. Private equity firms are also active, they consider clinical testing a less cyclical market with fairly attractive cash flows yields. Finally, laboratories were strategically acquired by non-lab healthcare companies.

As a consequence of ongoing lab market concentration and globalisation ConAlliance is advising national and international strategic investors, Private Equity funds and family offices in managing and realizing their activities of merging, acquisition and cooperation with clinical laboratory and diagnostic companies.